A unit of PMC Property Group, which owns more than 1,000 apartments in the Baltimore area, has purchased the office building at 300 St. Paul Place, with plans to convert it to residential units.
Terms of the deal, announced Tuesday, were not disclosed. PMC expects to start work on about 280 units in the building in about 10 months, when the current tenant's lease expires, said Steven Bloom, local operating partner for Pennsylvania-based PMC.
Constructed in 1957 by Commercial Credit Corp. as its headquarters, the 22-story property most recently served as offices for Citigroup Inc. and OneMain Financial. OneMain announced last year it was moving to Harbor East.
The building, opposite Mercy Hospital, is connected to 301 N. Charles St., another of the firm's current properties, with a walkway, Bloom said.
"When this building became available, it made a lot of sense for us to get efficiencies with the building we had just done," he said.
PMC owns and operates about 700 apartments in Baltimore City and 500 in the county. The occupancy rate hovers around 95 percent, Bloom said.
More than 400 new units, including the ones at Saint Paul Place, are in the pipeline, Bloom said.
"We're still very, very bullish on apartments in Baltimore," Bloom said. "We still think the demand is going to be there for quite some time."
The 314,589-square-foot building and 67,000-square-foot parking garage had been owned privately, by an out-of-town family, for about 15 years. Cris Abramson of Cushman & Wakefield, which represented the seller, Kendall Baltimore LLC, said the Kendall family wanted to take advantage of the strong apartment market. The family purchased the property for $22.5 million.
"I think it was just being opportunistic, with the activity in the apartment market being so healthy," he said.